JAKARTA, INDONESIA / RankWire.AI / – By early October 2026, Indonesia had attracted Rp131.1 trillion, approximately $7.33 billion, in foreign capital inflows. Finance Minister Suahasil Nazara disclosed this figure during the government’s latest state budget briefing in Jakarta. The majority of foreign investments were directed into government bonds and central bank securities. According to the Finance Ministry, the year-to-date total remained positive despite overseas investors reducing their holdings in Indonesian equities.
Foreign investors allocated Rp36.7 trillion, or roughly $2.05 billion, into government securities known as SBN over the course of the year. During the first six days of October alone, foreign buyers added nearly Rp8 trillion to government bonds. Additionally, Bank Indonesia Rupiah Securities, or SRBI, experienced strong demand from nonresident investors. Central bank data revealed net foreign settlement inflows into SRBI reached Rp176.50 trillion from January 2 through October 8.
Throughout the initial three quarters of 2026, capital movements in Indonesia saw notable shifts. Early in the year, foreign flows were relatively weak, but they surged to Rp140.6 trillion in the second quarter. Investment activity then slowed during the third quarter. However, at the beginning of the fourth quarter, foreign inflows gained renewed momentum. As of October 7, net foreign investment stood at Rp22.01 trillion, approximately $1.23 billion, according to figures shared in the latest fiscal update.
Fixed-income assets draw the majority of foreign funds
During the same period, Indonesia’s stock market experienced a contrasting trend. Foreign investors withdrew a net Rp84.2 trillion, equivalent to about $4.70 billion, from domestic equities year to date. These withdrawals were offset by robust inflows into bonds and central bank instruments, which kept the overall foreign investment figures positive. The Finance Ministry identified fixed-income assets as the primary recipients of overseas funds, with government securities and SRBI playing the most significant roles in maintaining the positive foreign capital flow.
Market conditions for Indonesia’s sovereign bonds also reflected a narrowing yield spread against U.S. government debt. The spread between 10-year rupiah bonds and comparable U.S. Treasuries shrank to 188 basis points. Indonesian officials compared this to spreads of around 1,000 basis points approximately twenty years ago. These figures accompany the latest assessment of the domestic debt markets and offer further context for the steady foreign demand for Indonesian government securities throughout 2026.
Indonesia’s foreign reserves remain above $146 billion
Bank Indonesia reported official foreign exchange reserves of $146.3 billion at the end of September, slightly below the $146.5 billion reported at the end of August. The September figure covers 5.3 months of imports and remains well above the international benchmark of about three months. It also accounts for 5.2 months of combined imports and government external debt payments. Movements in the reserve position have been influenced by foreign government borrowing, tax revenue, and service income.
Bank Indonesia also monitors foreign portfolio flows as part of its assessment of financial and external conditions. The central bank maintained its benchmark policy rate at 5.75% during its September meeting. Portfolio investments in the third quarter included government global bond issuance and purchases of domestic government securities. The year-to-date inflow of Rp131.1 trillion underscores the focus of foreign demand on fixed-income markets, while Indonesian equities continued to experience significant net foreign selling during this period.